Extending the size of Hard Disk in VMWare Fusion settings does not also extend the size of the Windows hard disk in the guest operating system. It creates more partition space, but to make it appear that your Windows hard drive is larger, you have to tell Windows to actually use the additional partition space. You can do do this with EASEUS Partition Master (free Home Edition). Here's what you do:

With the VM instance shut down, increase the Hard Disk space in the VMWare Fusion settings for the VM (and check to preallocate space).

Start EASEUS and use it to extend the current drive to take up the newly available space.

It's pretty straight-forward, so I don't think any screen-shots are necessary. The important thing to know is that extending the VMWare Fusion disk size does not increase the hard disk size inside the Windows instance and you need to use a partition tool like EASEUS to complete the task.